International Article Summary

INTERATIONAL ARTICLE SUMMARY: No. 1

INT 110 INTERNATIONAL BUSINESS ~ SECTION 3

DATE DUE: 9/15/14

DATE SUBMITTED: 9/15/14

Evelyn Rocha Kreischer

Business Week

http://www.businessweek.com/articles/2014-09-11/alibaba-sites-drive-chinas-e-commerce-growth

September 11, 2014

TITLE: In China, It's Meet Me at Tmall

AUTHOR:  Christina Larson

Primary Focus: Marketplaces such as Alibaba’s Taobao and Tmall dominate e-tailing in China, generating 90 percent of sales.

Accounting for nearly 80% of online sales in China, Alibaba has turned China into the world’s second largest e-commerce market.

According to China’s e-Tail Revolution, a May 2013 report from McKinsey, e-commerce is actually stimulating consumers to make purchases they otherwise wouldn’t because China is not a country that has large department stores. Alibaba has increased opportunity for consumers in smaller, further cities to purchase items that were out of their reach.

Digital marketplaces matching EBay, have become more used by consumers because of the variety of products listed, accounting for 90% of online sales in China according to McKinsey, while in the United States it only accounts for 24%. Because of its stricter policies, large brands like Prada tend to use Tmall, while Taobao being more diverse and less strict with its policies has more than 6 million registered sellers that range in company size.

Even though China is full of factories, and companies that want to market their own brands, fabricators like Guangdong Xiangshan Weighing Apparatus Group that produce scales for Bed Bath & Beyond  and other foreign companies set up online storefronts in Taobao, that now according to its product development and marketing manager makes one-fifth of its domestic sales.

Alibaba has certainly increased China e-commerce and also impacted the world market.

E-Commerce

In China, It's Meet Me at Tmall

By Christina Larson  September 11, 2014

Li Yuxin used to...